Beta:The Businessman’s guide to Erepublik

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The sole purpose of the article is to give both new and old business owners information on the best ways to run a company and how to avoid common mistakes.

Before you buy a company. Take a look at the market!

It’s a pretty heavy investment and it could in many cases be totally wrong to even consider buying one. Countries like Sweden and USA got a very strained market where more products are produced than bought. To buy a company during this scenario will only weaken the economy even more and the chances you’ll make a profit is close to non-existence.
Some countries also have a planned economy where the businesses of the government control the market. These are pretty much impossible to compete with.
Maybe you should exchange the gold and help the market get on the right track again by buying goods instead?

Get a starting capital

Don’t stress away to buy a company right after you obtained the 40 GOLD needed as your workers will demand a salary as soon as they join your company when you still haven’t produced and sold anything. Fill the company funds with some money from the start to be safe.

Is it possible to buy existing companies?

Yes it is.
You’ll not only make a profit and get on your feet faster when buying an already existing company, but you will also help another person when your money passes to him. If you buy a brand new company the money will disappear in the eRepublik galaxy and will never be of any use again.

Be careful with upgrading the quality!

If you can’t manage it financially, your workers will suffer a greater wellness loss and produce a bit slower for every higher quality. It’s also a risk they will leave if you can’t afford to raise their wage.
Therefore, always make sure the upgrade will be profitable by making sure the demand is high enough for the new quality on the market.

How do I find workers?

Go through the CV-list first and foremost and send job proposals to as many as you can. For many, mostly new users, the industry of their work doesn’t matter.
You could also advertise at the national forum and contact a different organization that can help you if possible.

How do I keep my laborers?

Give them the highest wage possible. To make a high profit yourself is of course very nice, but your workers' needs should always be priority number one. You should also give them different offers. It could be, for example, gifts (which mostly benefits you), more money if they show up to work a lot, or discounts if they choose to buy company products.

To fire

Don’t be afraid to fire a laborer if they are absent for about 2-3 days, but make sure to give him a message where you tell him he is welcome back when he is active again.
Inactivity is very critical for the production rate.

Export license?

This is a very advanced chapter and requires experience in the currency market and similarities.
You’ll need to make sure you can earn more money from the export license than you paid for it or it won’t be worth it.
They can be used both the help other countries or to hurt them.
I might develop this part more later.

Contact other businessmen

Keeping a good relationship with other CEOs in the same industry is very important. You might be able to make a similar price agreement on the common product to avoid a price war that will worsen the condition for both of you (or just for you if his intention is to compete with you in the market.)
Stealing workers from other businesses is never very popular but might be a good option if you are having a hard time finding workers yourself.
It’s rarely profitable though as you’ll need to give the stolen workers a wage that’s most of the time too high. If you notice that someone else is stealing workers from your company the best thing to do is most of the time nothing. You don’t want to disturb your company’s economy by raising the wages even more to keep the worker. Take a close look at the situation and decide for yourself what you consider to be the best alternative.

War isn’t always good for the economy.

War will worsen your laborers’ wellness which will make them produce slower. Deflation can turn to inflation faster than you can think.
I know of situations where employers have offered their employees higher wages if they don’t participate in the war.

The company is growing!

Congratulations! To have a higher number of employees and this will give the business a production bonus in eRepublik. But be careful as it will force you to spend more time managing your company. A bigger company will for example suffer a higher production loss when your workers are inactive and you’ll need to constantly sell products to pay the wages.
It’s going to be a lot harder for you to take breaks from the game.
Always adapt to the demand of the market! This is the key to everything!
I would also like to recommend the program AutoSalary that makes your job easier. Talk to Alleus for more information.

If possible

Try to get workers with a lower skill to work in the morning and more skilled personnel in the evenings as this betters the production.

What industry should I pick?

Moving

How many tickets are sold inside a country varies a lot but are generally sold in a quite low amount if you compare with other industries. People move inside the country to get close to hospitals or to flee overtaken regions during the war and to run for mayor during the local elections, but also to leave the country for different reasons.
It’s hard to decide when it’s smart to start a moving company.
Never make the mistake of upgrading to quality two or higher as it in most cases is unnecessary and bad.
Higher quality will only give you -2 wellness instead of -1 when you move and it’s more economical to make someone give you a gift instead. This will make people rather buy Q1 as you’ll be forced to sell your tickets more expensive because of higher production costs.
So put your 15 GOLD on something else.

Housing

Quite hard, as it demands a constant population increase if you want to get anything sold in the long run. It’s also pretty expensive as you’ll be forced to upgrade your quality a lot as people rather save for better houses than buy lower quality ones.
There are also times when citizens from less developed countries travel to more developed countries to buy higher quality houses. So to have a higher quality is very profitable.

Food

The interesting thing with food is that all qualities are needed in a big amount. A company owner can easily keep 100% wellness by eating Q1 food when a worker and soldier, on the other hand, need Q4.
The selling is at the same time very steady which makes it easier for you to follow the sales.
A common problem is the fact that there are too many food companies active in most countries which forced you to put the price very low and sometimes fire employees.

Gifts

Are mainly used during times of war but in very big amounts! The sale is very uneven which makes it hard for a private company owner. A hint is to co-operate with the government during peace times to get financed to store the gifts in uneven times.

Hospital

Close to impossible to manage without help from the government as they cost a lot to build.
The start capital needs to be very high and the quality needs to fit the country. You won't sell any Q1 hospital in a country where every hospital is quality four for example.

What’s best for the country?

You’re as a company owner a minority in the game and your employees demands are of the highest worth. When the company is making a profit doesn’t take it all yourself, make the wages higher! It’s better for the country's economy and you’ll become more popular among your employees. Or else you’ll have a more government-controlled country.
You work for your country and not for yourself as there is really no personal gain. If your country is advancing you are succeeding!
That’s how you win!

Source

• The Businessman’s guide to Erepublik